A study by management consultants McKinsey has called for pension funds, among other private investors, to help plug an Indian infrastructure deficit the country can “ill afford”, according to the Financial Times.
Decades of under-investment have left roads, trains and other core infrastructure needing a massive overhaul. The study found that the credit crunch and slowing foreign investment has blown a big hole in India’s planned $500 billion infrastructure spend in 2007-12. It reckons the deficit over the next three years alone is $190 billion.
McKinsey called for India to reform its financial system to create liquidity and attract new investors.